II 

112TH CONGRESS 

1ST SESSION S. 652 

To facilitate efficient investments and financing of infrastructure projects 

and new job creation through the establishment of an American Infrastructure Financing Authority, to provide for an extension of the exemption from the alternative minimum tax treatment for certain tax-exempt 

bonds, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 17, 2011 

Mr. KERRY (for himself, Mrs. HUTCHISON, Mr. WARNER, and Mr. GRAHAM) 

introduced the following bill; which was read twice and referred to the 

Committee on Finance 

A BILL 

To facilitate efficient investments and financing of infrastructure projects and new job creation through the establishment of an American Infrastructure Financing Authority, to provide for an extension of the exemption from 

the alternative minimum tax treatment for certain taxexempt bonds, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Building and Upgrading Infrastructure for Long-Term 

4 Development’’. 

5 (b) TABLE OF CONTENTS.—The table of contents for 

6 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings and purpose. 

Sec. 3. Definitions. 

TITLE I—AMERICAN INFRASTRUCTURE FINANCING AUTHORITY 

Sec. 101. Establishment and general authority of AIFA. 

Sec. 102. Voting members of the Board of Directors. 

Sec. 103. Chief executive officer of AIFA. 

Sec. 104. Powers and duties of the Board of Directors. 

Sec. 105. Senior management. 

Sec. 106. Special Inspector General for AIFA. 

Sec. 107. Other personnel. 

Sec. 108. Compliance. 

TITLE II—TERMS AND LIMITATIONS ON DIRECT LOANS AND 

LOAN GUARANTEES 

Sec. 201. Eligibility criteria for assistance from AIFA and terms and limitations of loans. 

Sec. 202. Loan terms and repayment. 

Sec. 203. Compliance and enforcement. 

Sec. 204. Audits; reports to the President and Congress. 

TITLE III—FUNDING OF AIFA 

Sec. 301. Fees. 

Sec. 302. Self-sufficiency of AIFA. 

Sec. 303. Funding. 

Sec. 304. Contract authority. 

TITLE IV—EXTENSION OF EXEMPTION FROM ALTERNATIVE 

MINIMUM TAX TREATMENT FOR CERTAIN TAX-EXEMPT BONDS 

Sec. 401. Extension of exemption from alternative minimum tax treatment for 

certain tax-exempt bonds. 

7 SEC. 2. FINDINGS AND PURPOSE. 

8 (a) FINDINGS.—Congress finds that— 

9 (1) infrastructure has always been a vital ele10 ment of the economic strength of the United States 


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1 and a key indicator of the international leadership of 

2 the United States; 

3 (2) the Erie Canal, the Hoover Dam, the rail4 roads, and the interstate highway system are all tes5 taments to American ingenuity and have helped pro6 pel and maintain the United States as the world’s 

7 largest economy; 

8 (3) according to the World Economic Forum’s 

9 Global Competitiveness Report, the United States 

10 fell to second place in 2009, and dropped to fourth 

11 place overall in 2010, however, in the ‘‘Quality of 

12 overall infrastructure’’ category of the same report, 

13 the United States ranked twenty-third in the world; 

14 (4) according to the World Bank’s 2010 Logis15 tic Performance Index, the capacity of countries to 

16 efficiently move goods and connect manufacturers 

17 and consumers with international markets is improv18 ing around the world, and the United States now 

19 ranks seventh in the world in logistics-related infra20 structure behind countries from both Europe and 

21 Asia; 

22 (5) according to a January 2009 report from 

23 the University of Massachusetts/Alliance for Amer24 ican Manufacturing entitled ‘‘Employment, Produc25 tivity and Growth,’’ infrastructure investment is a 


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1 ‘‘highly effective engine of job creation’’ such that 

2 $1,000,000,000 in new investment in infrastructure 

3 results in 18,000 total jobs; 

4 (6) according to the American Society of Civil 

5 Engineers, the current condition of the infrastruc6 ture in the United States earns a grade point aver7 age of D, and an estimated $2,200,000,000,000 in8 vestment is needed over the next 5 years to bring 

9 American infrastructure up to adequate condition; 

10 (7) according to the National Surface Trans11 portation Policy and Revenue Study Commission, 

12 $225,000,000,000 is needed annually from all 

13 sources for the next 50 years to upgrade the United 

14 States surface transportation system to a state of 

15 good repair and create a more advanced system; 

16 (8) the current infrastructure financing mecha17 nisms of the United States, both on the Federal and 

18 State level, will fail to meet current and foreseeable 

19 demands and will create large funding gaps; 

20 (9) published reports state that there may not 

21 be enough demand for municipal bonds to maintain 

22 the same level of borrowing at the same rates, re23 sulting in significantly decreased infrastructure in24 vestment at the State and local level; 


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1 (10) current funding mechanisms are not read2 ily scalable and do not— 

3 (A) serve large in-State or cross jurisdic4 tion infrastructure projects, projects of regional 

5 or national significance, or projects that cross 

6 sector silos; 

7 (B) sufficiently catalyze private sector in8 vestment; or 

9 (C) ensure the optimal return on public re10 sources; 

11 (11) although grant programs of the United 

12 States Government must continue to play a central 

13 role in financing the transportation, environment, 

14 and energy infrastructure needs of the United 

15 States, current and foreseeable demands on existing 

16 Federal, State, and local funding for infrastructure 

17 expansion clearly exceed the resources to support 

18 these programs by margins wide enough to prompt 

19 serious concerns about the United States ability to 

20 sustain long-term economic development, produc21 tivity, and international competitiveness; 

22 (12) the capital markets, including pension 

23 funds, private equity funds, mutual funds, sovereign 

24 wealth funds, and other investors, have a growing 

25 interest in infrastructure investment and represent 


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1 hundreds of billions of dollars of potential invest2 ment; and 

3 (13) the establishment of a United States Gov4 ernment-owned, independent, professionally managed 

5 institution that could provide credit support to quali6 fied infrastructure projects of regional and national 

7 significance, making transparent merit-based invest8 ment decisions based on the commercial viability of 

9 infrastructure projects, would catalyze the participa10 tion of significant private investment capital. 

11 (b) PURPOSE.—The purpose of this Act is to facili12 tate investment in, and long-term financing of, economi13 cally viable infrastructure projects of regional or national 

14 significance in a manner that both complements existing 

15 Federal, State, local, and private funding sources for these 

16 projects and introduces a merit-based system for financing 

17 such projects, in order to mobilize significant private sec18 tor investment, create jobs, and ensure United States com19 petitiveness through a self-sustaining institution that lim20 its the need for ongoing Federal funding. 

21 SEC. 3. DEFINITIONS. 

22 For purposes of this Act, the following definitions 

23 shall apply: 


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1 (1) AIFA.—The term ‘‘AIFA’’ means the 

2 American Infrastructure Financing Authority estab3 lished under this Act. 

4 (2) BLIND TRUST.—The term ‘‘blind trust’’ 

5 means a trust in which the beneficiary has no knowl6 edge of the specific holdings and no rights over how 

7 those holdings are managed by the fiduciary of the 

8 trust prior to the dissolution of the trust. 

9 (3) BOARD OF DIRECTORS.—The term ‘‘Board 

10 of Directors’’ means Board of Directors of AIFA. 

11 (4) CHAIRPERSON.—The term ‘‘Chairperson’’ 

12 means the Chairperson of the Board of Directors of 

13 AIFA. 

14 (5) CHIEF EXECUTIVE OFFICER.—The term 

15 ‘‘chief executive officer’’ means the chief executive 

16 officer of AIFA, appointed under section 103. 

17 (6) COST.—The term ‘‘cost’’ has the same 

18 meaning as in section 502 of the Federal Credit Re19 form Act of 1990 (2 U.S.C. 661a). 

20 (7) DIRECT LOAN.—The term ‘‘direct loan’’ has 

21 the same meaning as in section 502 of the Federal 

22 Credit Reform Act of 1990 (2 U.S.C. 661a). 

23 (8) ELIGIBLE ENTITY.—The term ‘‘eligible enti24 ty’’ means an individual, corporation, partnership 

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1 ture, trust, State, or other governmental entity, in2 cluding a political subdivision or any other instru3 mentality of a State, or a revolving fund. 

4 (9) INFRASTRUCTURE PROJECT.— 

5 (A) IN GENERAL.—The term ‘‘eligible in6 frastructure project’’ means any transportation, 

7 water, or energy infrastructure project, or an 

8 aggregation of such infrastructure projects, as 

9 provided in this Act. 

10 (B) TRANSPORTATION INFRASTRUCTURE

11 PROJECT.—The term ‘‘transportation infra12 structure project’’ means the construction, al13 teration, or repair, including the facilitation of 

14 intermodal transit, of the following subsectors: 

15 (i) Highway or road. 

16 (ii) Bridge. 

17 (iii) Mass transit. 

18 (iv) Inland waterways. 

19 (v) Commercial ports. 

20 (vi) Airports. 

21 (vii) Air traffic control systems. 

22 (viii) Passenger rail, including high23 speed rail. 

24 (ix) Freight rail systems. 


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1 (C) WATER INFRASTRUCTURE PROJECT.— 

2 The term ‘‘water infrastructure project’’ means 

3 the construction, consolidation, alteration, or 

4 repair of the following subsectors: 

5 (i) Water waste treatment facility. 

6 (ii) Storm water management system. 

7 (iii) Dam. 

8 (iv) Solid waste disposal facility. 

9 (v) Levee. 

10 (vi) Open space management system. 

11 (D) ENERGY INFRASTRUCTURE

12 PROJECT.—The term ‘‘energy infrastructure 

13 project’’ means the construction, alteration, or 

14 repair of the following subsectors: 

15 (i) Pollution reduced energy genera16 tion. 

17 (ii) Transmission and distribution. 

18 (iii) Storage. 

19 (iv) Energy efficiency enhancements 

20 for buildings, including public and com21 mercial buildings. 

22 (E) BOARD AUTHORITY TO MODIFY SUB23 SECTORS.—The Board of Directors may make 

24 modifications, at the discretion of the Board, to 

25 the subsectors described in this paragraph by a 


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1 vote of not fewer than 5 of the voting members 

2 of the Board of Directors. 

3 (10) INVESTMENT-GRADE RATING.—The term 

4 ‘‘investment-grade rating’’ means a rating of BBB 

5 minus, Baa3, or higher assigned to an infrastructure 

6 project by a ratings agency. 

7 (11) LOAN GUARANTEE.—The term ‘‘loan guar8 antee’’ has the same meaning as in section 502 of 

9 the Federal Credit Reform Act of 1990 (2 U.S.C. 

10 661a). 

11 (12) PUBLIC-PRIVATE PARTNERSHIP.—The 

12 term ‘‘public-private partnership’’ means any eligible 

13 entity— 

14 (A)(i) which is undertaking the develop15 ment of all or part of an infrastructure project 

16 that will have a public benefit, pursuant to re17 quirements established in one or more contracts 

18 between the entity and a State or an instru19 mentality of a State; or 

20 (ii) the activities of which, with respect to 

21 such an infrastructure project, are subject to 

22 regulation by a State or any instrumentality of 

23 a State; 


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1 (B) which owns, leases, or operates or will 

2 own, lease, or operate, the project in whole or 

3 in part; and 

4 (C) the participants in which include not 

5 fewer than 1 nongovernmental entity with sig6 nificant investment and some control over the 

7 project or project vehicle. 

8 (13) RURAL INFRASTRUCTURE PROJECT.—The 

9 term ‘‘rural infrastructure project’’ means an infra10 structure project in a rural area, as that term is de11 fined in section 343(a)(13)(A) of the Consolidated 

12 Farm and Rural Development Act (7 U.S.C. 

13 1991(a)(13)(A)). 

14 (14) SECRETARY.—Unless the context other15 wise requires, the term ‘‘Secretary’’ means the Sec16 retary of the Treasury or the designee thereof. 

17 (15) SENIOR MANAGEMENT.—The term ‘‘senior 

18 management’’ means the chief financial officer, chief 

19 risk officer, chief compliance officer, general counsel, 

20 chief lending officer, and chief operations officer of 

21 AIFA established under section 105, and such other 

22 officers as the Board of Directors may, by majority 

23 vote, add to senior management. 

24 (16) STATE.—The term ‘‘State’’ includes the 

25 District of Columbia, Puerto Rico, Guam, American 


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1 Samoa, the Virgin Islands, the Commonwealth of 

2 Northern Mariana Islands, and any other territory 

3 of the United States. 

4 TITLE I—AMERICAN INFRA5 STRUCTURE FINANCING AU6 THORITY 

7 SEC. 101. ESTABLISHMENT AND GENERAL AUTHORITY OF 

8 AIFA. 

9 (a) ESTABLISHMENT OF AIFA.—The American In10 frastructure Financing Authority is established as a whol11 ly owned Government corporation. 

12 (b) GENERAL AUTHORITY OF AIFA.—AIFA shall 

13 provide direct loans and loan guarantees to facilitate infra14 structure projects that are both economically viable and 

15 of regional or national significance, and shall have such 

16 other authority, as provided in this Act. 

17 (c) INCORPORATION.— 

18 (1) IN GENERAL.—The Board of Directors first 

19 appointed shall be deemed the incorporator of AIFA, 

20 and the incorporation shall be held to have been ef21 fected from the date of the first meeting of the 

22 Board of Directors. 

23 (2) CORPORATE OFFICE.—AIFA shall— 

24 (A) maintain an office in Washington, DC; 

25 and 


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1 (B) for purposes of venue in civil actions, 

2 be considered to be a resident of Washington, 

3 DC. 

4 (d) RESPONSIBILITY OF THE SECRETARY.—The Sec5 retary shall take such action as may be necessary to assist 

6 in implementing AIFA, and in carrying out the purpose 

7 of this Act. 

8 (e) RULE OF CONSTRUCTION.—Chapter 91 of title 

9 31, United States Code, does not apply to AIFA, unless 

10 otherwise specifically provided in this Act. 

11 SEC. 102. VOTING MEMBERS OF THE BOARD OF DIREC12 TORS. 

13 (a) VOTING MEMBERSHIP OF THE BOARD OF DIREC14 TORS.— 

15 (1) IN GENERAL.—AIFA shall have a Board of 

16 Directors consisting of 7 voting members appointed 

17 by the President, by and with the advice and consent 

18 of the Senate, not more than 4 of whom shall be 

19 from the same political party. 

20 (2) CHAIRPERSON.—One of the voting members 

21 of the Board of Directors shall be designated by the 

22 President to serve as Chairperson thereof. 

23 (3) CONGRESSIONAL RECOMMENDATIONS.—Not 

24 later than 30 days after the date of enactment of 

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1 nority leader of the Senate, the Speaker of the 

2 House of Representatives, and the minority leader of 

3 the House of Representatives shall each submit a 

4 recommendation to the President for appointment of 

5 a member of the Board of Directors, after consulta6 tion with the appropriate committees of Congress. 

7 (b) VOTING RIGHTS.—Each voting member of the 

8 Board of Directors shall have an equal vote in all decisions 

9 of the Board of Directors. 

10 (c) QUALIFICATIONS OF VOTING MEMBERS.—Each 

11 voting member of the Board of Directors shall— 

12 (1) be a citizen of the United States; and 

13 (2) have significant demonstrated expertise in— 

14 (A) the management and administration of 

15 a financial institution relevant to the operation 

16 of AIFA; or 

17 (B) the financing, development, or oper18 ation of infrastructure projects. 

19 (d) TERMS.— 

20 (1) IN GENERAL.—Except as otherwise pro21 vided in this Act, each voting member of the Board 

22 of Directors shall be appointed for a term of 4 years. 

23 (2) INITIAL STAGGERED TERMS.—Of the voting 

24 members first appointed to the Board of Directors— 


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1 (A) the initial Chairperson and 3 of the 

2 other voting members shall each be appointed 

3 for a term of 4 years; and 

4 (B) the remaining 3 voting members shall 

5 each be appointed for a term of 2 years. 

6 (3) DATE OF INITIAL NOMINATIONS.—The ini7 tial nominations for the appointment of all voting 

8 members of the Board of Directors shall be made 

9 not later than 60 days after the date of enactment 

10 of this Act. 

11 (4) BEGINNING OF TERM.—The term of each of 

12 the initial voting members appointed under this sec13 tion shall commence immediately upon the date of 

14 appointment, except that, for purposes of calculating 

15 the term limits specified in this subsection, the ini16 tial terms shall each be construed as beginning on 

17 January 22 of the year following the date of the ini18 tial appointment. 

19 (5) VACANCIES.—A vacancy in the position of 

20 a voting member of the Board of Directors shall be 

21 filled by the President, and a member appointed to 

22 fill a vacancy on the Board of Directors occurring 

23 before the expiration of the term for which the pred24 ecessor was appointed shall be appointed only for 

25 the remainder of that term. 


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1 (e) MEETINGS.— 

2 (1) OPEN TO THE PUBLIC; NOTICE.—Except as 

3 provided in paragraph (3), all meetings of the Board 

4 of Directors shall be— 

5 (A) open to the public; and 

6 (B) preceded by reasonable public notice. 

7 (2) FREQUENCY.—The Board of Directors shall 

8 meet not later than 60 days after the date on which 

9 all members of the Board of Directors are first ap10 pointed, at least quarterly thereafter, and otherwise 

11 at the call of either the Chairperson or 5 voting 

12 members of the Board of Directors. 

13 (3) EXCEPTION FOR CLOSED MEETINGS.—The 

14 voting members of the Board of Directors may, by 

15 majority vote, close a meeting to the public if, dur16 ing the meeting to be closed, there is likely to be dis17 closed proprietary or sensitive information regarding 

18 an infrastructure project under consideration for as19 sistance under this Act. The Board of Directors 

20 shall prepare minutes of any meeting that is closed 

21 to the public, and shall make such minutes available 

22 as soon as practicable, not later than 1 year after 

23 the date of the closed meeting, with any necessary 

24 redactions to protect any proprietary or sensitive in25 formation. 


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1 (4) QUORUM.—For purposes of meetings of the 

2 Board of Directors, 5 voting members of the Board 

3 of Directors shall constitute a quorum. 

4 (f) COMPENSATION OF MEMBERS.—Each voting 

5 member of the Board of Directors shall be compensated 

6 at a rate equal to the daily equivalent of the annual rate 

7 of basic pay prescribed for level III of the Executive 

8 Schedule under section 5314 of title 5, United States 

9 Code, for each day (including travel time) during which 

10 the member is engaged in the performance of the duties 

11 of the Board of Directors. 

12 (g) CONFLICTS OF INTEREST.—A voting member of 

13 the Board of Directors may not participate in any review 

14 or decision affecting an infrastructure project under con15 sideration for assistance under this Act, if the member has 

16 or is affiliated with an entity who has a financial interest 

17 in such project. 

18 SEC. 103. CHIEF EXECUTIVE OFFICER OF AIFA. 

19 (a) IN GENERAL.—The chief executive officer of 

20 AIFA shall be a nonvoting member of the Board of Direc21 tors, who shall be responsible for all activities of AIFA, 

22 and shall support the Board of Directors as set forth in 

23 this Act and as the Board of Directors deems necessary 

24 or appropriate. 


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1 (b) APPOINTMENT AND TENURE OF THE CHIEF EX2 ECUTIVE OFFICER.— 

3 (1) IN GENERAL.—The President shall appoint 

4 the chief executive officer, by and with the advice 

5 and consent of the Senate. 

6 (2) TERM.—The chief executive officer shall be 

7 appointed for a term of 6 years. 

8 (3) VACANCIES.—Any vacancy in the office of 

9 the chief executive officer shall be filled by the Presi10 dent, and the person appointed to fill a vacancy in 

11 that position occurring before the expiration of the 

12 term for which the predecessor was appointed shall 

13 be appointed only for the remainder of that term. 

14 (c) QUALIFICATIONS.—The chief executive officer— 

15 (1) shall have significant expertise in manage16 ment and administration of a financial institution, 

17 or significant expertise in the financing and develop18 ment of infrastructure projects; and 

19 (2) may not— 

20 (A) hold any other public office; 

21 (B) have any financial interest in an infra22 structure project then being considered by the 

23 Board of Directors, unless that interest is 

24 placed in a blind trust; or 


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1 (C) have any financial interest in an in2 vestment institution or its affiliates or any 

3 other entity seeking or likely to seek financial 

4 assistance for any infrastructure project from 

5 AIFA, unless any such interest is placed in a 

6 blind trust for the tenure of the service of the 

7 chief executive officer plus 2 additional years. 

8 (d) RESPONSIBILITIES.—The chief executive officer 

9 shall have such executive functions, powers, and duties as 

10 may be prescribed by this Act, the bylaws of AIFA, or 

11 the Board of Directors, including— 

12 (1) responsibility for the development and im13 plementation of the strategy of AIFA, including— 

14 (A) the development and submission to the 

15 Board of Directors of the annual business plans 

16 and budget; 

17 (B) the development and submission to the 

18 Board of Directors of a long-term strategic 

19 plan; and 

20 (C) the development, revision, and submis21 sion to the Board of Directors of internal poli22 cies; and 

23 (2) responsibility for the management and over24 sight of the daily activities, decisions, operations, 

25 and personnel of AIFA, including— 


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1 (A) the appointment of senior manage2 ment, subject to approval by the voting mem3 bers of the Board of Directors, and the hiring 

4 and termination of all other AIFA personnel; 

5 (B) requesting the detail, on a reimburs6 able basis, of personnel from any Federal agen7 cy having specific expertise not available from 

8 within AIFA, following which request the head 

9 of the Federal agency may detail, on a reim10 bursable basis, any personnel of such agency 

11 reasonably requested by the chief executive offi12 cer; 

13 (C) assessing and recommending in the 

14 first instance, for ultimate approval or dis15 approval by the Board of Directors, compensa16 tion and adjustments to compensation of senior 

17 management and other personnel of AIFA as 

18 may be necessary for carrying out the functions 

19 of AIFA; 

20 (D) ensuring, in conjunction with the gen21 eral counsel of AIFA, that all activities of 

22 AIFA are carried out in compliance with appli23 cable law; 

24 (E) overseeing the involvement of AIFA in 

25 all projects, including— 


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1 (i) developing eligible projects for 

2 AIFA financial assistance; 

3 (ii) determining the terms and condi4 tions of all financial assistance packages; 

5 (iii) monitoring all infrastructure 

6 projects assisted by AIFA, including re7 sponsibility for ensuring that the proceeds 

8 of any loan made, guaranteed, or partici9 pated in are used only for the purposes for 

10 which the loan or guarantee was made; 

11 (iv) preparing and submitting for ap12 proval by the Board of Directors the docu13 ments required under paragraph (1); and 

14 (v) ensuring the implementation of de15 cisions of the Board of Directors; and 

16 (F) such other activities as may be nec17 essary or appropriate in carrying out this Act. 

18 (e) COMPENSATION.— 

19 (1) IN GENERAL.—Any compensation assess20 ment or recommendation by the chief executive offi21 cer under this section shall be without regard to the 

22 provisions of chapter 51 or subchapter III of chapter 

23 53 of title 5, United States Code. 

24 (2) CONSIDERATIONS.—The compensation as25 sessment or recommendation required under this 


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1 subsection shall take into account merit principles, 

2 where applicable, as well as the education, experi3 ence, level of responsibility, geographic differences, 

4 and retention and recruitment needs in determining 

5 compensation of personnel. 

6 SEC. 104. POWERS AND DUTIES OF THE BOARD OF DIREC7 TORS. 

8 The Board of Directors shall— 

9 (1) as soon as is practicable after the date on 

10 which all members are appointed, approve or dis11 approve senior management appointed by the chief 

12 executive officer; 

13 (2) not later than 180 days after the date on 

14 which all members are appointed— 

15 (A) develop and approve the bylaws of 

16 AIFA, including bylaws for the regulation of 

17 the affairs and conduct of the business of 

18 AIFA, consistent with the purpose, goals, objec19 tives, and policies set forth in this Act; 

20 (B) establish subcommittees, including an 

21 audit committee that is composed solely of 

22 members of the Board of Directors who are 

23 independent of the senior management of 

24 AIFA; 


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1 (C) develop and approve, in consultation 

2 with senior management, a conflict-of-interest 

3 policy for the Board of Directors and for senior 

4 management; 

5 (D) approve or disapprove internal policies 

6 that the chief executive officer shall submit to 

7 the Board of Directors, including— 

8 (i) policies regarding the loan applica9 tion and approval process, including— 

10 (I) disclosure and application 

11 procedures to be followed by entities 

12 in the course of nominating infra13 structure projects for assistance under 

14 this Act; 

15 (II) guidelines for the selection 

16 and approval of projects; 

17 (III) specific criteria for deter18 mining eligibility for project selection, 

19 consistent with title II; and 

20 (IV) standardized terms and con21 ditions, fee schedules, or legal require22 ments of a contract or program, so as 

23 to carry out this Act; and 

24 (ii) operational guidelines; and 


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1 (E) approve or disapprove a 1-year busi2 ness plan and budget for AIFA; 

3 (3) ensure that AIFA is at all times operated 

4 in a manner that is consistent with this Act, by— 

5 (A) monitoring and assessing the effective6 ness of AIFA in achieving its strategic goals; 

7 (B) periodically reviewing internal policies; 

8 (C) reviewing and approving annual busi9 ness plans, annual budgets, and long-term 

10 strategies submitted by the chief executive offi11 cer; 

12 (D) reviewing and approving annual re13 ports submitted by the chief executive officer; 

14 (E) engaging one or more external audi15 tors, as set forth in this Act; and 

16 (F) reviewing and approving all changes to 

17 the organization of senior management; 

18 (4) appoint and fix, by a vote of 5 of the 7 vot19 ing members of the Board of Directors, and without 

20 regard to the provisions of chapter 51 or subchapter 

21 III of chapter 53 of title 5, United Sates Code, the 

22 compensation and adjustments to compensation of 

23 all AIFA personnel, provided that in appointing and 

24 fixing any compensation or adjustments to com25 pensation under this paragraph, the Board shall— 


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1 (A) consult with, and seek to maintain 

2 comparability with, other comparable Federal 

3 personnel, as the Secretary may deem appro4 priate; 

5 (B) consult with the Office of Personnel 

6 Management; and 

7 (C) carry out such duties consistent with 

8 merit principles, where applicable, as well as the 

9 education, experience, level of responsibility, ge10 ographic differences, and retention and recruit11 ment needs in determining compensation of per12 sonnel; 

13 (5) establish such other criteria, requirements, 

14 or procedures as the Board of Directors may con15 sider to be appropriate in carrying out this Act; 

16 (6) serve as the primary liaison for AIFA in 

17 interactions with Congress, the Executive Branch, 

18 and State and local governments, and to represent 

19 the interests of AIFA in such interactions and oth20 ers; 

21 (7) approve by a vote of 5 of the 7 voting mem22 bers of the Board of Directors any changes to the 

23 bylaws or internal policies of AIFA; 

24 (8) have the authority and responsibility— 


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1 (A) to oversee entering into and carry out 

2 such contracts, leases, cooperative agreements, 

3 or other transactions as are necessary to carry 

4 out this Act with— 

5 (i) any Federal department or agency; 

6 (ii) any State, territory, or possession 

7 (or any political subdivision thereof, includ8 ing State infrastructure banks) of the 

9 United States; and 

10 (iii) any individual, public-private 

11 partnership, firm, association, or corpora12 tion; 

13 (B) to approve of the acquisition, lease, 

14 pledge, exchange, and disposal of real and per15 sonal property by AIFA and otherwise approve 

16 the exercise by AIFA of all of the usual inci17 dents of ownership of property, to the extent 

18 that the exercise of such powers is appropriate 

19 to and consistent with the purposes of AIFA; 

20 (C) to determine the character of, and the 

21 necessity for, the obligations and expenditures 

22 of AIFA, and the manner in which the obliga23 tions and expenditures will be incurred, allowed, 

24 and paid, subject to this Act and other Federal 


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1 law specifically applicable to wholly owned Fed2 eral corporations; 

3 (D) to execute, in accordance with applica4 ble bylaws and regulations, appropriate instru5 ments; 

6 (E) to approve other forms of credit en7 hancement that AIFA may provide to eligible 

8 projects, as long as the forms of credit enhance9 ments are consistent with the purposes of this 

10 Act and terms set forth in title II; 

11 (F) to exercise all other lawful powers 

12 which are necessary or appropriate to carry out, 

13 and are consistent with, the purposes of AIFA; 

14 (G) to sue or be sued in the corporate ca15 pacity of AIFA in any court of competent juris16 diction; 

17 (H) to indemnify the members of the 

18 Board of Directors and officers of AIFA for 

19 any liabilities arising out of the actions of the 

20 members and officers in such capacity, in ac21 cordance with, and subject to the limitations 

22 contained in this Act; 

23 (I) to review all financial assistance pack24 ages to all eligible infrastructure projects, as 

25 submitted by the chief executive officer and to 


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1 approve, postpone, or deny the same by major2 ity vote; 

3 (J) to review all restructuring proposals 

4 submitted by the chief executive officer, includ5 ing assignation, pledging, or disposal of the in6 terest of AIFA in a project, including payment 

7 or income from any interest owned or held by 

8 AIFA, and to approve, postpone, or deny the 

9 same by majority vote; and 

10 (K) to enter into binding commitments, as 

11 specified in approved financial assistance pack12 ages; 

13 (9) delegate to the chief executive officer those 

14 duties that the Board of Directors deems appro15 priate, to better carry out the powers and purposes 

16 of the Board of Directors under this section; and 

17 (10) to approve a maximum aggregate amount 

18 of principal exposure of AIFA at any given time. 

19 SEC. 105. SENIOR MANAGEMENT. 

20 (a) IN GENERAL.—Senior management shall support 

21 the chief executive officer in the discharge of the respon22 sibilities of the chief executive officer. 

23 (b) APPOINTMENT OF SENIOR MANAGEMENT.—The 

24 chief executive officer shall appoint such senior managers 

25 as are necessary to carry out the purpose of AIFA, as 


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1 approved by a majority vote of the voting members of the 

2 Board of Directors. 

3 (c) TERM.—Each member of senior management 

4 shall serve at the pleasure of the chief executive officer 

5 and the Board of Directors. 

6 (d) REMOVAL OF SENIOR MANAGEMENT.—Any mem7 ber of senior management may be removed, either by a 

8 majority of the voting members of the Board of Directors 

9 upon request by the chief executive officer, or otherwise 

10 by vote of not fewer than 5 voting members of the Board 

11 of Directors. 

12 (e) SENIOR MANAGEMENT.— 

13 (1) IN GENERAL.—Each member of senior 

14 management shall report directly to the chief execu15 tive officer, other than the Chief Risk Officer, who 

16 shall report directly to the Board of Directors. 

17 (2) DUTIES AND RESPONSIBILITIES.— 

18 (A) CHIEF FINANCIAL OFFICER.—The 

19 Chief Financial Officer shall be responsible for 

20 all financial functions of AIFA, provided that, 

21 at the discretion of the Board of Directors, spe22 cific functions of the Chief Financial Officer 

23 may be delegated externally. 


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1 (B) CHIEF RISK OFFICER.—The Chief 

2 Risk Officer shall be responsible for all func3 tions of AIFA relating to— 

4 (i) the creation of financial, credit, 

5 and operational risk management guide6 lines and policies; 

7 (ii) the establishment of guidelines to 

8 ensure diversification of lending activities 

9 by region, infrastructure project type, and 

10 project size; 

11 (iii) the creation of conforming stand12 ards for infrastructure finance agreements; 

13 (iv) the monitoring of the financial, 

14 credit, and operational exposure of AIFA; 

15 and 

16 (v) risk management and mitigation 

17 actions, including by reporting such ac18 tions, or recommendations of such actions 

19 to be taken, directly to the Board of Direc20 tors. 

21 (C) CHIEF COMPLIANCE OFFICER.—The 

22 Chief Compliance Officer shall be responsible 

23 for all functions of AIFA relating to internal 

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1 ment of such safeguards and other applicable 

2 requirements. 

3 (D) GENERAL COUNSEL.—The General 

4 Counsel shall be responsible for all functions of 

5 AIFA relating to legal matters and, in consulta6 tion with the chief executive officer, shall be re7 sponsible for ensuring that AIFA complies with 

8 all applicable law. 

9 (E) CHIEF OPERATIONS OFFICER.—The 

10 Chief Operations Officer shall be responsible for 

11 all operational functions of AIFA, including 

12 those relating to the continuing operations and 

13 performance of all infrastructure projects in 

14 which AIFA retains an interest and for all 

15 AIFA functions related to human resources. 

16 (F) CHIEF LENDING OFFICER.—The Chief 

17 Lending Officer shall be responsible for— 

18 (i) all functions of AIFA relating to 

19 the development of project pipeline, finan20 cial structuring of projects, credit analysis 

21 of infrastructure projects, selection of in22 frastructure projects to be reviewed by the 

23 Board of Directors, preparation of infra24 structure projects to be presented to the 


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1 Board of Directors, and set aside for rural 

2 infrastructure projects; and 

3 (ii) the creation and management of— 

4 (I) a Center for Excellence to 

5 provide technical assistance to public 

6 sector borrowers in the development 

7 and financing of infrastructure 

8 projects; and 

9 (II) an Office of Rural Assistance 

10 to provide technical assistance in the 

11 development and financing of rural in12 frastructure projects. 

13 (f) CHANGES TO SENIOR MANAGEMENT.—The Board 

14 of Directors, in consultation with the chief executive offi15 cer, may alter the structure of the senior management of 

16 AIFA at any time to better accomplish the goals, objec17 tives, and purposes of AIFA, provided that the functions 

18 of the Chief Financial Officer set forth in subsection (e) 

19 remain separate from the functions of the Chief Risk Offi20 cer set forth in subsection (e). 

21 (g) CONFLICTS OF INTEREST.—No individual ap22 pointed to senior management may— 

23 (1) hold any other public office; 

24 (2) have any financial interest in an infrastruc25 ture project then being considered by the Board of 


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1 Directors, unless that interest is placed in a blind 

2 trust; or 

3 (3) have any financial interest in an investment 

4 institution or its affiliates, AIFA or its affiliates, or 

5 other entity then seeking or likely to seek financial 

6 assistance for any infrastructure project from AIFA, 

7 unless any such interest is placed in a blind trust 

8 during the term of service of that individual in a 

9 senior management position, and for a period of 2 

10 years thereafter. 

11 SEC. 106. SPECIAL INSPECTOR GENERAL FOR AIFA. 

12 (a) IN GENERAL.—During the first 5 operating years 

13 of AIFA, the Office of the Inspector General of the De14 partment of the Treasury shall have responsibility for 

15 AIFA. 

16 (b) OFFICE OF THE SPECIAL INSPECTOR GEN17 ERAL.—Effective 5 years after the date of enactment of 

18 the commencement of the operations of AIFA, there is es19 tablished the Office of the Special Inspector General for 

20 AIFA. 

21 (c) APPOINTMENT OF INSPECTOR GENERAL; RE22 MOVAL.— 

23 (1) HEAD OF OFFICE.—The head of the Office 

24 of the Special Inspector General for AIFA shall be 

25 the Special Inspector General for AIFA (in this Act 


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1 referred to as the ‘‘Special Inspector General’’), who 

2 shall be appointed by the President, by and with the 

3 advice and consent of the Senate. 

4 (2) BASIS OF APPOINTMENT.—The appoint5 ment of the Special Inspector General shall be made 

6 on the basis of integrity and demonstrated ability in 

7 accounting, auditing, financial analysis, law, man8 agement analysis, public administration, or inves9 tigations. 

10 (3) TIMING OF NOMINATION.—The nomination 

11 of an individual as Special Inspector General shall 

12 be made as soon as is practicable after the effective 

13 date under subsection (b). 

14 (4) REMOVAL.—The Special Inspector General 

15 shall be removable from office in accordance with 

16 the provisions of section 3(b) of the Inspector Gen17 eral Act of 1978 (5 U.S.C. App.). 

18 (5) RULE OF CONSTRUCTION.—For purposes of 

19 section 7324 of title 5, United States Code, the Spe20 cial Inspector General shall not be considered an em21 ployee who determines policies to be pursued by the 

22 United States in the nationwide administration of 

23 Federal law. 

24 (6) RATE OF PAY.—The annual rate of basic 

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1 nual rate of basic pay for an Inspector General 

2 under section 3(e) of the Inspector General Act of 

3 1978 (5 U.S.C. App.). 

4 (d) DUTIES.— 

5 (1) IN GENERAL.—It shall be the duty of the 

6 Special Inspector General to conduct, supervise, and 

7 coordinate audits and investigations of the business 

8 activities of AIFA. 

9 (2) OTHER SYSTEMS, PROCEDURES, AND CON10 TROLS.—The Special Inspector General shall estab11 lish, maintain, and oversee such systems, procedures, 

12 and controls as the Special Inspector General con13 siders appropriate to discharge the duty under para14 graph (1). 

15 (3) ADDITIONAL DUTIES.—In addition to the 

16 duties specified in paragraphs (1) and (2), the In17 spector General shall also have the duties and re18 sponsibilities of inspectors general under the Inspec19 tor General Act of 1978. 

20 (e) POWERS AND AUTHORITIES.— 

21 (1) IN GENERAL.—In carrying out the duties 

22 specified in subsection (c), the Special Inspector 

23 General shall have the authorities provided in section 

24 6 of the Inspector General Act of 1978. 


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1 (2) ADDITIONAL AUTHORITY.—The Special In2 spector General shall carry out the duties specified 

3 in subsection (c)(1) in accordance with section 

4 4(b)(1) of the Inspector General Act of 1978. 

5 (f) PERSONNEL, FACILITIES, AND OTHER RE6 SOURCES.— 

7 (1) ADDITIONAL OFFICERS.— 

8 (A) The Special Inspector General may se9 lect, appoint, and employ such officers and em10 ployees as may be necessary for carrying out 

11 the duties of the Special Inspector General, 

12 subject to the provisions of title 5, United 

13 States Code, governing appointments in the 

14 competitive service, and the provisions of chap15 ter 51 and subchapter III of chapter 53 of such 

16 title, relating to classification and General 

17 Schedule pay rates. 

18 (B) The Special Inspector General may ex19 ercise the authorities of subsections (b) through 

20 (i) of section 3161 of title 5, United States 

21 Code (without regard to subsection (a) of that 

22 section). 

23 (2) RETENTION OF SERVICES.—The Special In24 spector General may obtain services as authorized by 

25 section 3109 of title 5, United States Code, at daily 


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1 rates not to exceed the equivalent rate prescribed for 

2 grade GS–15 of the General Schedule by section 

3 5332 of such title. 

4 (3) ABILITY TO CONTRACT FOR AUDITS, STUD5 IES, AND OTHER SERVICES.—The Special Inspector 

6 General may enter into contracts and other arrange7 ments for audits, studies, analyses, and other serv8 ices with public agencies and with private persons, 

9 and make such payments as may be necessary to 

10 carry out the duties of the Special Inspector Gen11 eral. 

12 (4) REQUEST FOR INFORMATION.— 

13 (A) IN GENERAL.—Upon request of the 

14 Special Inspector General for information or as15 sistance from any department, agency, or other 

16 entity of the Federal Government, the head of 

17 such entity shall, insofar as is practicable and 

18 not in contravention of any existing law, furnish 

19 such information or assistance to the Special 

20 Inspector General, or an authorized designee. 

21 (B) REFUSAL TO COMPLY.—Whenever in22 formation or assistance requested by the Spe23 cial Inspector General is, in the judgment of the 

24 Special Inspector General, unreasonably refused 

25 or not provided, the Special Inspector General 


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1 shall report the circumstances to the Secretary 

2 of the Treasury, without delay. 

3 (g) REPORTS.— 

4 (1) ANNUAL REPORT.—Not later than 1 year 

5 after the confirmation of the Special Inspector Gen6 eral, and every calendar year thereafter, the Special 

7 Inspector General shall submit to the President a re8 port summarizing the activities of the Special In9 spector General during the previous 1-year period 

10 ending on the date of such report. 

11 (2) PUBLIC DISCLOSURES.—Nothing in this 

12 subsection shall be construed to authorize the public 

13 disclosure of information that is— 

14 (A) specifically prohibited from disclosure 

15 by any other provision of law; 

16 (B) specifically required by Executive order 

17 to be protected from disclosure in the interest 

18 of national defense or national security or in 

19 the conduct of foreign affairs; or 

20 (C) a part of an ongoing criminal inves21 tigation. 

22 SEC. 107. OTHER PERSONNEL. 

23 Except as otherwise provided in the bylaws of AIFA, 

24 the chief executive officer, in consultation with the Board 

25 of Directors, shall appoint, remove, and define the duties 


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1 of such qualified personnel as are necessary to carry out 

2 the powers, duties, and purpose of AIFA, other than sen3 ior management, who shall be appointed in accordance 

4 with section 105. 

5 SEC. 108. COMPLIANCE. 

6 The provision of assistance by the Board of Directors 

7 pursuant to this Act shall not be construed as superseding 

8 any provision of State law or regulation otherwise applica9 ble to an infrastructure project. 

10 TITLE II—TERMS AND LIMITA11 TIONS ON DIRECT LOANS AND 

12 LOAN GUARANTEES 

13 SEC. 201. ELIGIBILITY CRITERIA FOR ASSISTANCE FROM 

14 AIFA AND TERMS AND LIMITATIONS OF 

15 LOANS. 

16 (a) IN GENERAL.—Any project whose use or purpose 

17 is private and for which no public benefit is created shall 

18 not be eligible for financial assistance from AIFA under 

19 this Act. Financial assistance under this Act shall only 

20 be made available if the applicant for such assistance has 

21 demonstrated to the satisfaction of the Board of Directors 

22 that the infrastructure project for which such assistance 

23 is being sought— 

24 (1) is not for the refinancing of an existing in25 frastructure project; and 


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1 (2) meets— 

2 (A) any pertinent requirements set forth in 

3 this Act; 

4 (B) any criteria established by the Board 

5 of Directors or chief executive officer in accord6 ance with this Act; and 

7 (C) the definition of a transportation infra8 structure project, water infrastructure project, 

9 or energy infrastructure project. 

10 (b) CONSIDERATIONS.—The criteria established by 

11 the Board of Directors pursuant to this Act shall provide 

12 adequate consideration of— 

13 (1) the economic, financial, technical, environ14 mental, and public benefits and costs of each infra15 structure project under consideration for financial 

16 assistance under this Act, prioritizing infrastructure 

17 projects that— 

18 (A) contribute to regional or national eco19 nomic growth; 

20 (B) offer value for money to taxpayers; 

21 (C) demonstrate a clear public benefit; 

22 (D) lead to job creation; and 

23 (E) mitigate environmental concerns; 


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1 (2) the means by which development of the in2 frastructure project under consideration is being fi3 nanced, including— 

4 (A) the terms, conditions, and structure of 

5 the proposed financing; 

6 (B) the credit worthiness and standing of 

7 the project sponsors, providers of equity, and 

8 cofinanciers; 

9 (C) the financial assumptions and projec10 tions on which the infrastructure project is 

11 based; and 

12 (D) whether there is sufficient State or 

13 municipal political support for the successful 

14 completion of the infrastructure project; 

15 (3) the likelihood that the provision of assist16 ance by AIFA will cause such development to pro17 ceed more promptly and with lower costs for financ18 ing than would be the case without such assistance; 

19 (4) the extent to which the provision of assist20 ance by AIFA maximizes the level of private invest21 ment in the infrastructure project or supports a 

22 public-private partnership, while providing a signifi23 cant public benefit; 


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1 (5) the extent to which the provision of assist2 ance by AIFA can mobilize the participation of other 

3 financing partners in the infrastructure project; 

4 (6) the technical and operational viability of the 

5 infrastructure project; 

6 (7) the proportion of financial assistance from 

7 AIFA; 

8 (8) the geographic location of the project in an 

9 effort to have geographic diversity of projects funded 

10 by AIFA; 

11 (9) the size of the project and its impact on the 

12 resources of AIFA; and 

13 (10) the infrastructure sector of the project, in 

14 an effort to have projects from more than one sector 

15 funded by AIFA. 

16 (c) APPLICATION.— 

17 (1) IN GENERAL.—Any eligible entity seeking 

18 assistance from AIFA under this Act for an eligible 

19 infrastructure project shall submit an application to 

20 AIFA at such time, in such manner, and containing 

21 such information as the Board of Directors or the 

22 chief executive officer may require. 

23 (2) REVIEW OF APPLICATIONS.—AIFA shall re24 view applications for assistance under this Act on an 

25 ongoing basis. The chief executive officer, working 


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1 with the senior management, shall prepare eligible 

2 infrastructure projects for review and approval by 

3 the Board of Directors. 

4 (3) DEDICATED REVENUE SOURCES.—The Fed5 eral credit instrument shall be repayable, in whole or 

6 in part, from tolls, user fees, or other dedicated rev7 enue sources that also secure the infrastructure 

8 project obligations. 

9 (d) ELIGIBLE INFRASTRUCTURE PROJECT COSTS.— 

10 (1) IN GENERAL.—Except as provided in para11 graph (2), to be eligible for assistance under this 

12 Act, an infrastructure project shall have project 

13 costs that are reasonably anticipated to equal or ex14 ceed $100,000,000. 

15 (2) RURAL INFRASTRUCTURE PROJECTS.—To 

16 be eligible for assistance under this Act a rural in17 frastructure project shall have project costs that are 

18 reasonably anticipated to equal or exceed 

19 $25,000,000. 

20 (e) LOAN ELIGIBILITY AND MAXIMUM AMOUNTS.— 

21 (1) IN GENERAL.—The amount of a direct loan 

22 or loan guarantee under this Act shall not exceed 

23 the lesser of 50 percent of the reasonably anticipated 

24 eligible infrastructure project costs or, if the direct 

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1 ment grade rating, the amount of the senior project 

2 obligations. 

3 (2) MAXIMUM ANNUAL LOAN AND LOAN GUAR4 ANTEE VOLUME.—The aggregate amount of direct 

5 loans and loan guarantees made by AIFA in any 

6 single fiscal year may not exceed— 

7 (A) during the first 2 fiscal years of the 

8 operations of AIFA, $10,000,000,000; 

9 (B) during fiscal years 3 through 9 of the 

10 operations of AIFA, $20,000,000,000; or 

11 (C) during any fiscal year thereafter, 

12 $50,000,000,000. 

13 (f) STATE AND LOCAL PERMITS REQUIRED.—The 

14 provision of assistance by the Board of Directors pursuant 

15 to this Act shall not be deemed to relieve any recipient 

16 of such assistance, or the related infrastructure project, 

17 of any obligation to obtain required State and local per18 mits and approvals. 

19 SEC. 202. LOAN TERMS AND REPAYMENT. 

20 (a) IN GENERAL.—A direct loan or loan guarantee 

21 under this Act with respect to an eligible infrastructure 

22 project shall be on such terms, subject to such conditions, 

23 and contain such covenants, representations, warranties, 

24 and requirements (including requirements for audits) as 

25 the chief executive officer determines appropriate. 


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1 (b) TERMS.—A direct loan or loan guarantee under 

2 this Act— 

3 (1) shall— 

4 (A) be payable, in whole or in part, from 

5 tolls, user fees, or other dedicated revenue 

6 sources that also secure the senior project obli7 gations (such as availability payments and dedi8 cated State or local revenues); and 

9 (B) include a rate covenant, coverage re10 quirement, or similar security feature sup11 porting the project obligations; and 

12 (2) may have a lien on revenues described in 

13 paragraph (1), subject to any lien securing project 

14 obligations. 

15 (c) BASE INTEREST RATE.—The base interest rate 

16 on a direct loan under this Act shall be not less than the 

17 yield on United States Treasury obligations of a similar 

18 maturity to the maturity of the direct loan on the date 

19 of execution of the loan agreement. 

20 (d) RISK ASSESSMENT.—Before entering into an 

21 agreement for assistance under this Act, the chief execu22 tive officer, in consultation with the Director of the Office 

23 of Management and Budget and each rating agency pro24 viding a preliminary rating opinion letter under this sec25 tion, shall determine an appropriate Federal credit subsidy 


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1 amount for each direct loan and loan guarantee, taking 

2 into account such letter, as well as any comparable market 

3 rates available for such a loan or loan guarantee, should 

4 any exist. 

5 (e) CREDIT FEE.—With respect to each agreement 

6 for assistance under this Act, the chief executive officer 

7 shall charge a credit fee to the recipient of such assistance 

8 to pay for, over time, all or a portion of the Federal credit 

9 subsidy determined under subsection (d), with the remain10 der paid by the account established for AIFA. In the case 

11 of a direct loan, such credit fee shall be in addition to 

12 the base interest rate established under subsection (c). 

13 (f) MATURITY DATE.—The final maturity date of a 

14 direct loan or loan guaranteed by AIFA under this Act 

15 shall be not later than 35 years after the date of substan16 tial completion of the infrastructure project, as determined 

17 by the chief executive officer. 

18 (g) PRELIMINARY RATING OPINION LETTER.— 

19 (1) IN GENERAL.—The chief executive officer 

20 shall require each applicant for assistance under this 

21 Act to provide a preliminary rating opinion letter 

22 from at least 1 ratings agency, indicating that the 

23 senior obligations of the infrastructure project, 

24 which may be the Federal credit instrument, have 

25 the potential to achieve an investment-grade rating. 


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1 (2) RURAL INFRASTRUCTURE PROJECTS.—With 

2 respect to a rural infrastructure project, a rating 

3 agency opinion letter described in paragraph (1) 

4 shall not be required, except that the loan or loan 

5 guarantee shall receive an internal rating score, 

6 using methods similar to the ratings agencies gen7 erated by AIFA, measuring the proposed direct loan 

8 or loan guarantee against comparable direct loans or 

9 loan guarantees of similar credit quality in a similar 

10 sector. 

11 (h) INVESTMENT-GRADE RATING REQUIREMENT.— 

12 (1) LOANS AND LOAN GUARANTEES.—The exe13 cution of a direct loan or loan guarantee under this 

14 Act shall be contingent on the senior obligations of 

15 the infrastructure project receiving an investment16 grade rating. 

17 (2) RATING OF AIFA OVERALL PORTFOLIO.— 

18 The average rating of the overall portfolio of AIFA 

19 shall be not less than investment grade after 5 years 

20 of operation. 

21 (i) TERMS AND REPAYMENT OF DIRECT LOANS.— 

22 (1) SCHEDULE.—The chief executive officer 

23 shall establish a repayment schedule for each direct 

24 loan under this Act, based on the projected cash 


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1 flow from infrastructure project revenues and other 

2 repayment sources. 

3 (2) COMMENCEMENT.—Scheduled loan repay4 ments of principal or interest on a direct loan under 

5 this Act shall commence not later than 5 years after 

6 the date of substantial completion of the infrastruc7 ture project, as determined by the chief executive of8 ficer of AIFA. 

9 (3) DEFERRED PAYMENTS OF DIRECT

10 LOANS.— 

11 (A) AUTHORIZATION.—If, at any time 

12 after the date of substantial completion of an 

13 infrastructure project assisted under this Act, 

14 the infrastructure project is unable to generate 

15 sufficient revenues to pay the scheduled loan re16 payments of principal and interest on the direct 

17 loan under this Act, the chief executive officer 

18 may allow the obligor to add unpaid principal 

19 and interest to the outstanding balance of the 

20 direct loan, if the result would benefit the tax21 payer. 

22 (B) INTEREST.—Any payment deferred 

23 under subparagraph (A) shall— 


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1 (i) continue to accrue interest, in ac2 cordance with the terms of the obligation, 

3 until fully repaid; and 

4 (ii) be scheduled to be amortized over 

5 the remaining term of the loan. 

6 (C) CRITERIA.— 

7 (i) IN GENERAL.—Any payment defer8 ral under subparagraph (A) shall be con9 tingent on the infrastructure project meet10 ing criteria established by the Board of Di11 rectors. 

12 (ii) REPAYMENT STANDARDS.—The 

13 criteria established under clause (i) shall 

14 include standards for reasonable assurance 

15 of repayment. 

16 (4) PREPAYMENT OF DIRECT LOANS.— 

17 (A) USE OF EXCESS REVENUES.—Any ex18 cess revenues that remain after satisfying 

19 scheduled debt service requirements on the in20 frastructure project obligations and direct loan 

21 and all deposit requirements under the terms of 

22 any trust agreement, bond resolution, or similar 

23 agreement securing project obligations under 

24 this Act may be applied annually to prepay the 

25 direct loan, without penalty. 


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1 (B) USE OF PROCEEDS OF REFI2 NANCING.—A direct loan under this Act may be 

3 prepaid at any time, without penalty, from the 

4 proceeds of refinancing from non-Federal fund5 ing sources. 

6 (5) SALE OF DIRECT LOANS.— 

7 (A) IN GENERAL.—As soon as is prac8 ticable after substantial completion of an infra9 structure project assisted under this Act, and 

10 after notifying the obligor, the chief executive 

11 officer may sell to another entity, or reoffer into 

12 the capital markets, a direct loan for the infra13 structure project, if the chief executive officer 

14 determines that the sale or reoffering can be 

15 made on favorable terms for the taxpayer. 

16 (B) CONSENT OF OBLIGOR.—In making a 

17 sale or reoffering under subparagraph (A), the 

18 chief executive officer may not change the origi19 nal terms and conditions of the direct loan, 

20 without the written consent of the obligor. 

21 (j) LOAN GUARANTEES.— 

22 (1) TERMS.—The terms of a loan guaranteed 

23 by AIFA under this Act shall be consistent with the 

24 terms set forth in this section for a direct loan, ex25 cept that the rate on the guaranteed loan and any 


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1 payment, pre-payment, or refinancing features shall 

2 be negotiated between the obligor and the lender, 

3 with the consent of the chief executive officer. 

4 (2) GUARANTEED LENDER.—A guaranteed 

5 lender shall be limited to those lenders meeting the 

6 definition of that term in section 601(a) of title 23, 

7 United States Code. 

8 (k) COMPLIANCE WITH FCRA.— 

9 (1) IN GENERAL.—Except as provided in para10 graph (2), direct loans and loan guarantees author11 ized by this Act shall be subject to the provisions of 

12 the Federal Credit Reform Act of 1990 (2 U.S.C. 

13 661 et seq.). 

14 (2) EXCEPTION.—Section 504(b) of the Federal 

15 Credit Reform Act of 1990 (2 U.S.C. 661c(b)) shall 

16 not apply to a loan or loan guarantee under this 

17 Act. 

18 SEC. 203. COMPLIANCE AND ENFORCEMENT. 

19 (a) CREDIT AGREEMENT.—Notwithstanding any 

20 other provision of law, each eligible entity that receives 

21 assistance under this Act from AIFA shall enter into a 

22 credit agreement that requires such entity to comply with 

23 all applicable policies and procedures of AIFA, in addition 

24 to all other provisions of the loan agreement. 


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1 (b) AIFA AUTHORITY ON NONCOMPLIANCE.—In any 

2 case in which a recipient of assistance under this Act is 

3 materially out of compliance with the loan agreement, or 

4 any applicable policy or procedure of AIFA, the Board of 

5 Directors may take action to cancel unutilized loan 

6 amounts, or to accelerate the repayment terms of any out7 standing obligation. 

8 SEC. 204. AUDITS; REPORTS TO THE PRESIDENT AND CON9 GRESS. 

10 (a) ACCOUNTING.—The books of account of AIFA 

11 shall be maintained in accordance with generally accepted 

12 accounting principles, and shall be subject to an annual 

13 audit by independent public accountants of nationally rec14 ognized standing appointed by the Board of Directors. 

15 (b) REPORTS.— 

16 (1) BOARD OF DIRECTORS.—Not later than 90 

17 days after the last day of each fiscal year, the Board 

18 of Directors shall submit to the President and Con19 gress a complete and detailed report with respect to 

20 the preceding fiscal year, setting forth— 

21 (A) a summary of the operations of AIFA, 

22 for such fiscal year; 

23 (B) a schedule of the obligations of AIFA 

24 and capital securities outstanding at the end of 

25 such fiscal year, with a statement of the 


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1 amounts issued and redeemed or paid during 

2 such fiscal year; 

3 (C) the status of infrastructure projects re4 ceiving funding or other assistance pursuant to 

5 this Act during such fiscal year, including all 

6 nonperforming loans, and including disclosure 

7 of all entities with a development, ownership, or 

8 operational interest in such infrastructure 

9 projects; 

10 (D) a description of the successes and 

11 challenges encountered in lending to rural com12 munities, including the role of the Center for 

13 Excellence and the Office of Rural Assistance 

14 established under this Act; and 

15 (E) an assessment of the risks of the port16 folio of AIFA, prepared by an independent 

17 source. 

18 (2) GAO.—Not later than 5 years after the 

19 date of enactment of this Act, the Comptroller Gen20 eral of the United States shall conduct an evaluation 

21 of, and shall submit to Congress a report on, activi22 ties of AIFA for the fiscal years covered by the re23 port that includes an assessment of the impact and 

24 benefits of each funded infrastructure project, in25 cluding a review of how effectively each such infraVerDate Mar 15 2010 00:41 Mar 25, 2011 Jkt 099200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\S652.IS S652

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1 structure project accomplished the goals prioritized 

2 by the infrastructure project criteria of AIFA. 

3 (c) BOOKS AND RECORDS.— 

4 (1) IN GENERAL.—AIFA shall maintain ade5 quate books and records to support the financial 

6 transactions of AIFA, with a description of financial 

7 transactions and infrastructure projects receiving 

8 funding, and the amount of funding for each such 

9 project maintained on a publically accessible data10 base. 

11 (2) AUDITS BY THE SECRETARY AND GAO.— 

12 The books and records of AIFA shall at all times be 

13 open to inspection by the Secretary of the Treasury, 

14 the Special Inspector General, and the Comptroller 

15 General of the United States. 

16 TITLE III—FUNDING OF AIFA 

17 SEC. 301. FEES. 

18 (a) IN GENERAL.—The chief executive officer shall 

19 establish fees with respect to loans and loan guarantees 

20 under this Act that— 

21 (1) are sufficient to cover all the administrative 

22 costs to the Federal Government for the operations 

23 of AIFA; 

24 (2) may be in the form of an application or 

25 transaction fee, or interest rate adjustment; and 


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1 (3) may be based on the risk premium associ2 ated with the loan or loan guarantee, taking into 

3 consideration— 

4 (A) the price of United States Treasury 

5 obligations of a similar maturity; 

6 (B) prevailing market conditions; 

7 (C) the ability of the infrastructure project 

8 to support the loan or loan guarantee; and 

9 (D) the total amount of the loan or loan 

10 guarantee. 

11 (b) TREASURY RECEIPTS.—AIFA shall annually de12 posit amounts of fees collected under this section that are 

13 not used for the expenses of AIFA as miscellaneous re14 ceipts with the Treasury. 

15 SEC. 302. SELF-SUFFICIENCY OF AIFA. 

16 The chief executive officer shall, to the extent pos17 sible, take actions consistent with this Act to make AIFA 

18 a self-sustaining entity, with administrative costs and Fed19 eral credit subsidy costs fully funded by fees and risk pre20 miums on loans and loan guarantees. 

21 SEC. 303. FUNDING. 

22 There is authorized to be appropriated to AIFA to 

23 carry out this Act, to make direct loans and loan guaran24 tees under this Act, not more than $10,000,000,000, to 

25 remain available until expended, of which amount, not 


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1 more than $25,000,000 for each of fiscal years 2012 

2 through 2013, and not more than $50,000,000 for fiscal 

3 year 2014 may be used for administrative costs of AIFA. 

4 Such amount shall earn interest. Not more than 5 percent 

5 of such amount shall be used to offset subsidy costs associ6 ated with rural infrastructure projects. 

7 SEC. 304. CONTRACT AUTHORITY. 

8 Notwithstanding any other provision of law, approval 

9 by the Board of Directors of a Federal credit instrument 

10 that uses funds made available under this Act shall impose 

11 upon the United States a contractual obligation to fund 

12 the Federal credit investment. 

13 TITLE IV—EXTENSION OF EX14 EMPTION FROM ALTER15 NATIVE MINIMUM TAX TREAT16 MENT FOR CERTAIN TAX-EX17 EMPT BONDS 

18 SEC. 401. EXTENSION OF EXEMPTION FROM ALTERNATIVE 

19 MINIMUM TAX TREATMENT FOR CERTAIN 

20 TAX-EXEMPT BONDS. 

21 (a) IN GENERAL.—Clause (vi) of section 57(a)(5)(C) 

22 of the Internal Revenue Code of 1986 is amended— 

23 (1) by striking ‘‘January 1, 2011’’ in subclause 

24 (I) and inserting ‘‘January 1, 2013’’; and 


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1 (2) by striking ‘‘AND 2010’’ in the heading and 

2 inserting ‘‘, 2010, 2011, AND 2012’’. 

3 (b) ADJUSTED CURRENT EARNINGS.—Clause (iv) of 

4 section 56(g)(4)(B) of the Internal Revenue Code of 1986 

5 is amended— 

6 (1) by striking ‘‘January 1, 2011’’ in subclause 

7 (I) and inserting ‘‘January 1, 2013’’; and 

8 (2) by striking ‘‘AND 2010’’ in the heading and 

9 inserting ‘‘, 2010, 2011, AND 2012’’. 

10 (c) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to obligations issued after Decem12 ber 31, 2010. 

Æ 


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